Appeals of Material Supervisory Determinations: Guidelines & Decisions
SARC-99-06 (November 24, 1999)
The Supervision Appeals Review Committee (the Committee) has considered your appeal relative to the apparent violations cited and the resulting ratings assigned in the Federal Deposit Insurance Corporations (FDIC) April 19, 1999 Report of Examination-Trust Department (the Report), of [Bank] (Bank).
The Committee has resolved the appeal in favor of the Bank. Accordingly, the apparent violation of the Internal Revenue Code of 1986 and related regulations of the United States Department of the Treasury, and the Employee Retirement Income Security Act of 1974 (ERISA) with respect to the Banks Employee Stock Ownership Plan (the ESOP) cited as set forth on pages 14-15 of the Report under the headings Apparent Violations Involving The Banks Retirement Plan and Other Violations are hereby withdrawn from the Report.
As a result of this revision, the Component Ratings related to Management and Compliance assigned at the examination are changed from 3 to 2 and, as a result, the overall Composite Rating is revised from 3 to 2. The Dallas Regional Office has informed us that, as a result of the Committees action, the proposed Memorandum of Understanding is being withdrawn. Please contact the Dallas Regional Office if you have any questions.
Please note that this decision by the Committee does not impact upon the jurisdiction of the United States Department of Labor to interpret and enforce ERISAs requirements. Similarly, this decision by the Committee does not affect the jurisdiction of the Internal Revenue Service to interpret and enforce its ESOP regulations. The FDIC will not, however, provide information regarding the transaction to the Department of Labor under the interagency ERISA referral agreement of 1980.
In accordance with the Guidelines for Appeals of Material Supervisory Determinations published at 60 Fed. Reg. 15923 (March 28, 1995), the scope of this review was limited to the facts and circumstances that existed at the time of the examination.
This determination is considered the Federal Deposit Insurance Corporations final supervisory decision.
By direction of the Supervision Appeals Review Committee of the Federal Deposit Insurance Corporation.